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Microsoft Pursued Multi-Billion Dollar Deals to Make Bing Default on Apple and Samsung Devices

  • Microsoft considered investing billions in 2016 to make Bing the default search on Apple's Safari browser to better compete with Google.

  • Microsoft CEO Satya Nadella met with Apple CEO Tim Cook as part of the talks. Microsoft would have taken a multi-billion dollar loss on the deal.

  • Microsoft had a deal for Apple to use Bing in Siri and Spotlight from 2013-2017, but wanted to expand to Safari.

  • Microsoft discussed with its board how to explain the multi-billion dollar loss to shareholders.

  • Microsoft also tried unsuccessfully to get Samsung to make Bing the default search on its smartphones.

yahoo.com
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Google maintains a dominant position in the global search engine market with a 90.7% market share, while its competitors like Bing and Yahoo lag far behind, according to data from Similarweb. However, Google is currently facing a civil antitrust lawsuit by the U.S. Justice Department for alleged anticompetitive practices. Bing, despite its AI-powered version, has not made significant progress in challenging Google's dominance.
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Microsoft CEO Satya Nadella testified in the U.S. antitrust fight between the Justice Department and Google, dismissing the idea that it is easy to change defaults on devices and revealing that Microsoft had sought to make Bing the default search engine on Apple smartphones but was rejected.
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Apple has turned down opportunities to challenge Google's search engine dominance, including the chance to purchase Bing and make DuckDuckGo the default for Safari's private browsing mode, according to court transcripts unsealed in the US government's antitrust lawsuit against Google.
Apple executive John Giannandrea dismissed the idea of making DuckDuckGo the default search engine in Safari's private browsing mode due to concerns about its privacy claims and reliance on Bing, according to unsealed transcripts from the US antitrust trial over Google search.
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Google's payment to Apple for maintaining its position as the default search engine on iOS devices is estimated to be between $18 billion and $20 billion per year, according to financial advisor Bernstein, with the deal accounting for 14-16% of Apple's annual operating profits; however, the ongoing antitrust trial against Google could put this agreement at risk.
The antitrust case against Google puts the annual payment it makes to Apple for being the default search engine at risk, which constitutes 14-16% of Apple's profits, but Bernstein analysts believe Apple has options to mitigate the potential impact, such as partnering with another search engine or launching its own.
Apple's long-standing and lucrative agreement with Google to have it as the default search engine on Safari across its products has prevented Apple from developing its own search product and solidifies Google's dominance in the search industry, according to evidence presented in the US v. Google antitrust trial.
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Google could be paying Apple between $18 billion to $20 billion a year to maintain its status as the dominant search engine on the iPhone, potentially generating 14-16% of Apple's annual operating profits, but this agreement may be at risk due to an ongoing antitrust suit.
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Google paid $26.3 billion in 2021 to maintain its default search engine status and acquire traffic, with a significant portion going to Apple, according to testimony by Google's Vice President Prabhakar Raghavan in the ongoing antitrust suit.
Google paid $26.3 billion in 2021 to be the default search engine across various platforms and devices, revealing the importance of default settings for the company.